MasterCard Incorporated (MA): Today's Featured Diversified Services Winner

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

MasterCard Incorporated ( MA) pushed the Diversified Services industry higher today making it today's featured diversified services winner. The industry as a whole closed the day up 1.2%. By the end of trading, MasterCard Incorporated rose $8 (1.8%) to $460.98 on heavy volume. Throughout the day, 1.1 million shares of MasterCard Incorporated exchanged hands as compared to its average daily volume of 720,700 shares. The stock ranged in a price between $451.18-$465 after having opened the day at $452.47 as compared to the previous trading day's close of $452.98. Other companies within the Diversified Services industry that increased today were: China HGS Real Estate ( HGSH), up 175%, Oxygen Biotherapeutics ( OXBT), up 15.4%, HMS Holdings Corporation ( HMSY), up 12.2%, and Corinthian Colleges ( COCO), up 11.7%.
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MasterCard Incorporated, a payments and technology company, together with its subsidiaries, provides transaction processing and other payment-related services in the United States and internationally. MasterCard Incorporated has a market cap of $54.21 billion and is part of the services sector. The company has a P/E ratio of 27.1, equal to the average diversified services industry P/E ratio and above the S&P 500 P/E ratio of 17.7. Shares are up 21.5% year to date as of the close of trading on Tuesday. Currently there are 22 analysts that rate MasterCard Incorporated a buy, one analyst rates it a sell, and six rate it a hold.

TheStreet Ratings rates MasterCard Incorporated as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins, good cash flow from operations, growth in earnings per share and increase in net income. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.

On the negative front, Lender Processing Services ( LPS), down 11.8%, American Learning ( ALRN), down 10.1%, Huron Consulting Group ( HURN), down 9.1%, and Cleveland BioLabs ( CBLI), down 7.5%, were all laggards within the diversified services industry with Western Union Company ( WU) being today's diversified services industry laggard.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the diversified services industry could consider iShares Dow Jones US Cons Services ( IYC) while those bearish on the diversified services industry could consider ProShares Ultra Short Consumer Sers ( SCC).

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